Two Sessions: Deputies Highlight Level 3 Autonomous Driving

Editor's note:

As Shanghai convenes its annual Two Sessions, the city's policy direction offers a vital blueprint for China's economic ambitions. This series rounds up key proposals from deputies across the finance, tech, automotive and healthcare sectors. For global investors, these discussions signal the next phase of growth in one of the world's most dynamic hubs.

As 2026 marks a pivotal "Year One" for the Level 3 autonomous driving industry in China, the topic has taken center stage at Shanghai's annual Two Sessions political gathering.

Level 3 autonomous driving allows the vehicle to take full control of all aspects of driving under specific conditions, such as on highways, but requires a human driver or remote technician to remain alert and ready to intervene if the system requests assistance.

While the city issued its first batch of commercial licenses for intelligent connected vehicles last year, deputies warn that a shortage of operational cars and limited testing zones are currently putting bottlenecks in the sector's growth.

Yang Guoping, a deputy to the Shanghai People's Congress and Chairman of Dazhong Transportation Group, has proposed a pragmatic solution: Deploying fully driverless taxis to handle "short-distance refusals" at the city's two major aviation hubs.

"Drivers at Pudong and Hongqiao airports often wait four to five hours in line, only to receive a short-distance order," Yang noted, highlighting a long-standing friction point where drivers are reluctant to take local fares and passengers face long waits. "By encouraging autonomous vehicles in these specific scenarios, we can resolve this conflict, improve efficiency, and operate 24 hours a day."

Yang emphasized that since pilot programs began in 2023 across various areas like suburban Jiading District and Lingang in the Pudong New Area, the technology has proven its reliability. He pointed out that data from similar trials in cities like Wuhan, central Hubei Province, show accident rates are significantly lower than those of human-driven cars, as artificial intelligence adheres strictly to traffic regulations without aggressive lane-changing or speeding.

Yang's proposal calls for a rapid expansion in the current fleet and the opening of more urban testing areas to ensure Shanghai maintains its edge as a global leader in smart city infrastructure.

Meanwhile, the push for automation extends beyond passenger travel into specialized industrial sectors.

Earlier, during the district-level Two Sessions in Jiading, Shu Qiang, a member of the District Political Consultative Conference and Chairman of Shanghai Tongyu Automotive Technology, stated that autonomous driving will enter a phase of large-scale promotion in low-speed scenarios, such as logistics, sanitation and park security.

With his firm a provider of "chassis-by-wire" technology – a critical execution layer for smart driving – Shu noted that the market is heating up. However, he cautioned that significant hurdles remain.

"We recognize the challenges in technical reliability, regulatory standards, and infrastructure synergy," Shu said. He urged the government to support breakthroughs in key component technologies and create a more "friendly environment" for testing and applying innovative products.